KLIPPAN, Sweden, Sept. 3, 2002 (PRIMEZONE) -- Klippan AB:
-- Profit after net financial items MSEK 34.2 (11.5) -- The integration of KLIPPAN Molndal is progressing according to plan -- New issue carried out
General
KLIPPAN AB bought Stora Enso Molndal AB as at 2 April 2002, whereupon this company changes its name to KLIPPAN Molndal AB. The acquisition has meant that certain historical comparison figures are not relevant.
The acquisition has partly been financed through a new issue, which was completed during the month of July. The effects of this are therefore not shown in the report.
Sales
Orders received by European fine paper mills during the first half of the year continued to be unsatisfactory. Compared to the very weak period last year, orders received increased by only 2% for coated paper, while uncoated paper showed an increase of 7%. The general price level in Europe has been under pressure, in particular for coated qualities, during the first six months of the year.
For KLIPPAN's part, the level of orders received has been satisfactory and all the paper machines have been working according to plan. The integration of KLIPPAN Molndal has been fortunate from a marketing point- of-view, and KLIPPAN has strengthened its positions significantly.
Production
The year's production of paper amounted to 68,950 tons (48,050). KLIPPAN Molndal's proportion of the manufacturing was 16,050 tons. Pulp manufacture increased by just over 400 tons to 15,700 tons.
As part of the restructuring of the production units, Klippan Mill has reintroduced a fifth shift for PM7 and PM10 as from August 2002.
Result
Operating profit for the group amounted to MSEK 43.8 (18.9) and profit after financial items amounted to MSEK 34.2 (11.5). The return on capital employed for the latest 12 month period was 13.8% (12.1 for the entirety of 2001). The improved result was in the main due to reduced costs, which has improved margins.
The exchange rate development during the second quarter has been favourable to KLIPPAN. The Swedish krona weakened against the euro, while strengthening against the U.S. dollar.
At the end of the second quarter, the number of employees at work was 887 (509).
Investments
Investments in the parent company during the period was MSEK 76.4 (4.8). the majority of which related to the acquisition of KLIPPAN Molndal AB. To this are added investments into KLIPPAN Molndal of MSEK 8.1. Large investment projects in addition to the company acquisition were the A4 line in Molndal, a new pulp tower in Lessebo and the acquisition of further shares in Inveresk PLC.
Changes to equity
Opening equity 2002-01-01 208.0
Dividend paid to -6.2
shareholders
Translation differences -0.2
Result for the six 25.1
month period
Closing equity 2002-06-30 226.7
Liquidity and financing Group liquid assets, including the unused proportion of the bank overdraft facility, amounted to MSEK 135.8 (62.9) at the end of the six months. The interest-bearing net liability has increased by MSEK 200.6 since the year-end to MSEK 339.6. Solidity amounted to 24.5% (34.4) and the debt/equity ratio to 1.5 (1.0).
Cash flow analysis
New share issue for KLIPPAN completed During July, the new issue for KLIPPAN AB was completed. It was fully subscribed and raised MSEK 41.3 for the company. Of these, MSEK 39 have been used to amortize loans.
After the new issue, the number of shares in KLIPPAN AB amounts to 8,266,666, each of a nominal SEK 5.
Purchase of shares in Inveresk PLC
During the second quarter, KLIPPAN has increased its shareholding in the paper producing company Inveresk PLC. A further 500,000 shares have been purchased, which means that KLIPPAN now owns around 8.5% of the company. Together with associated interests, KLIPPAN now controls just over 24% of Inveresk.
Next report
KLIPPAN's interim report will be presented on 24 October 2002.
Klippan, 29 August 2002
Bengt Ostensson President/CEO
Audit report
We have reviewed the periodic report for the period 1 January - 30 June 2002 and thereby followed the recommendations issued by the Swedish Institute of Authorized Public Accountants (FAR).
A review is considerably limited in comparison with an audit.
Nothing as emerged to indicate that the periodic report does not fulfil the requirements of the Annual Accounts Act.
Gert Frej Berith Ehrenpohl Authorized Public Accountant Authorized Public Accountant
For further information, please contact the President:
Bengt Ostensson, tel +46(0)70 595 86 27 or
Vice-President Finance Kenneth Nellros, tel +46(0)70 542 93 25.
(*) Reported annually
(**) Share price as at 02-06-30 SEK 39.00, as at 01-12-31 SEK 21.00,
as at 01-06-30 SEK 18.50
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